By: Armbrister S.R. No. 939
SENATE RESOLUTION
1-1 BE IT RESOLVED by the Senate of the State of Texas, 75th
1-2 Legislature, Regular Session, 1997, That Senate Rules 12.03(1),
1-3 (2), (3), and (4), Senate Rule 12.04(5), and Senate Rules 12.05(1),
1-4 (2), (3), and (5) be suspended in part as provided by Senate Rule
1-5 12.08 to enable the conference committee appointed to resolve the
1-6 differences on House Bill No. 4 to consider and take action on the
1-7 following specific matter:
1-8 Senate Rules 12.03(1), (2), (3), and (4), Senate Rule
1-9 12.04(5), and Senate Rules 12.05(1), (2), (3), and (5) are
1-10 suspended to permit the committee to add, change, and delete text
1-11 and matters and to add a complete substitute to House Bill No. 4 to
1-12 read as follows:
1-13 ARTICLE 1. SCHOOL FINANCE
1-14 SECTION 1.01. Subchapter A, Chapter 41, Education Code, is
1-15 amended by adding Section 41.0011 to read as follows:
1-16 Sec. 41.0011. COMPUTATION OF WEALTH PER STUDENT FOR
1-17 1997-1998 SCHOOL YEAR. (a) Notwithstanding any other provision of
1-18 this chapter, in computing a school district's wealth per student
1-19 for the 1997-1998 school year, a school district's taxable value of
1-20 property under Subchapter M, Chapter 403, Government Code, is
1-21 determined as if the increase in the homestead exemption under
1-22 Section 1-b(c), Article VIII, Texas Constitution, and the
1-23 additional limitation on tax increases under Section 1-b(d) of that
2-1 article, as proposed by H.J.R. No. 4, 75th Legislature, Regular
2-2 Session, 1997, had been in effect for the 1996 tax year.
2-3 (b) This section expires September 1, 1998.
2-4 SECTION 1.02. Section 41.093, Education Code, is amended to
2-5 read as follows:
2-6 Sec. 41.093. COST. The cost of each credit is an amount
2-7 equal to the greater of:
2-8 (1) the amount of the district's maintenance and
2-9 operations [total] tax revenue per student in weighted average
2-10 daily attendance for the school year for which the contract is
2-11 executed; or
2-12 (2) the amount of the statewide district average of
2-13 maintenance and operations [total] tax revenue per student in
2-14 weighted average daily attendance for the school year preceding the
2-15 school year for which the contract is executed.
2-16 SECTION 1.03. Subchapter E, Chapter 42, Education Code, is
2-17 amended by adding Section 42.2511 to read as follows:
2-18 Sec. 42.2511. COMPUTATION OF STATE AID FOR 1997-1998 SCHOOL
2-19 YEAR; ADDITIONAL STATE AID. (a) Notwithstanding any other
2-20 provision of this chapter, in computing state aid for the 1997-1998
2-21 school year, a school district's taxable value of property under
2-22 Subchapter M, Chapter 403, Government Code, is determined as if the
2-23 increase in the homestead exemption under Section 1-b(c), Article
2-24 VIII, Texas Constitution, and the additional limitation on tax
2-25 increases under Section 1-b(d) of that article, as proposed by
3-1 H.J.R. No. 4, 75th Legislature, Regular Session, 1997, had been in
3-2 effect for the 1996 tax year.
3-3 (b) For the 1997-1998 and 1998-1999 school years, a school
3-4 district is entitled to additional state aid to the extent that
3-5 state aid under this chapter based on the determination of the
3-6 school district's taxable value of property as provided by
3-7 Subsection (a) does not fully compensate the district for ad
3-8 valorem tax revenue that would have been lost due to the increase
3-9 in the homestead exemption and the additional limitation on tax
3-10 increases if the increased exemption and additional limitation had
3-11 been in effect for the 1996 tax year. The commissioner, using
3-12 information provided by the comptroller, shall compute the amount
3-13 of additional state aid to which a district is entitled under this
3-14 subsection. A determination by the commissioner under this
3-15 subsection is final and may not be appealed.
3-16 (c) This section expires September 1, 1999.
3-17 SECTION 1.04. Subtitle I, Title 2, Education Code, is
3-18 amended by adding Chapter 46 to read as follows:
3-19 CHAPTER 46. INSTRUCTIONAL FACILITIES ALLOTMENT
3-20 Sec. 46.001. DEFINITION. In this chapter, "instructional
3-21 facility" means real property, an improvement to real property, or
3-22 a necessary fixture of an improvement to real property that is used
3-23 predominantly for teaching the curriculum required under Section
3-24 28.002.
3-25 Sec. 46.002. RULES. (a) The commissioner may adopt rules
4-1 for the administration of this chapter.
4-2 (b) The commissioner's rules may limit the amount of an
4-3 allotment under this chapter that is to be used to construct,
4-4 acquire, renovate, or improve an instructional facility that may
4-5 also be used for noninstructional or extracurricular activities.
4-6 Sec. 46.003. SCHOOL FACILITIES ALLOTMENT. (a) For each
4-7 year, except as provided by Sections 46.005 and 46.006, a school
4-8 district is guaranteed a specified amount per student in state and
4-9 local funds for each cent of tax effort, up to the maximum rate
4-10 under Subsection (b), to pay the principal of and interest on
4-11 eligible bonds issued to construct, acquire, renovate, or improve
4-12 an instructional facility. The amount of state support is
4-13 determined by the formula:
4-14 FYA = (FYL X ADA X BTR X 100) - (BTR X (DPV/100))
4-15 where:
4-16 "FYA" is the guaranteed facilities yield amount of state
4-17 funds allocated to the district for the year;
4-18 "FYL" is the dollar amount guaranteed level of state and
4-19 local funds per student per cent of tax effort, which is $28 or a
4-20 greater amount for any year provided by appropriation;
4-21 "ADA" is the number of students in average daily attendance,
4-22 as determined under Section 42.005, in the district;
4-23 "BTR" is the district's bond tax rate for the current year,
4-24 which is determined by dividing the amount of taxes budgeted to be
4-25 collected by the district for payment of eligible bonds by the
5-1 quotient of the district's taxable value of property as determined
5-2 under Subchapter M, Chapter 403, Government Code; and
5-3 "DPV" is the district's taxable value of property as
5-4 determined under Subchapter M, Chapter 403, Government Code.
5-5 (b) The bond tax rate under Subsection (a) may not exceed
5-6 the rate that would be necessary for the current year, using state
5-7 funds under Subsection (a), to make payments of principal and
5-8 interest on the bonds for which the tax is pledged.
5-9 (c) To enable the district to collect local funds sufficient
5-10 to pay the district's share of the debt service, a district may
5-11 levy a bond tax at a rate higher than the maximum rate for which it
5-12 may receive state assistance.
5-13 (d) Bonds are eligible to be paid with state and local funds
5-14 under this section if:
5-15 (1) taxes to pay the principal of and interest on the
5-16 bonds were first levied in the 1997-1998 school year or a later
5-17 school year; and
5-18 (2) the bonds do not have a weighted average maturity
5-19 of less than eight years.
5-20 (e) A district may use state funds received under this
5-21 section only to pay the principal of and interest on the bonds for
5-22 which the district received the funds.
5-23 (f) The board of trustees and voters of a school district
5-24 shall determine district needs concerning construction,
5-25 acquisition, renovation, or improvement of instructional
6-1 facilities.
6-2 (g) To receive state assistance under this chapter, a school
6-3 district must apply to the commissioner in accordance with rules
6-4 adopted by the commissioner before issuing bonds that will be paid
6-5 with state assistance. Until the bonds are fully paid or the
6-6 instructional facility is sold:
6-7 (1) a school district is entitled to continue
6-8 receiving state assistance without reapplying to the commissioner;
6-9 and
6-10 (2) the guaranteed level of state and local funds per
6-11 student per cent of tax effort applicable to the bonds may not be
6-12 reduced below the level provided for the year in which the bonds
6-13 were issued.
6-14 Sec. 46.004. LEASE-PURCHASE AGREEMENTS. (a) A district may
6-15 receive state assistance in connection with a lease-purchase
6-16 agreement concerning an instructional facility. For purposes of
6-17 this chapter:
6-18 (1) taxes levied for purposes of maintenance and
6-19 operations that are necessary to pay a district's share of the
6-20 payments under a lease-purchase agreement for which the district
6-21 receives state assistance under this chapter are considered to be
6-22 bond taxes; and
6-23 (2) payments under a lease-purchase agreement are
6-24 considered to be payments of principal of and interest on bonds.
6-25 (b) Section 46.003(b) applies to taxes levied to pay a
7-1 district's share of the payments under a lease-purchase agreement
7-2 for which the district receives state assistance under this
7-3 chapter.
7-4 (c) A lease-purchase agreement must be for a term of at
7-5 least eight years to be eligible to be paid with state and local
7-6 funds under this chapter.
7-7 Sec. 46.005. LIMITATION ON GUARANTEED AMOUNT. The
7-8 guaranteed amount of state and local funds for a new project that a
7-9 district may be awarded in any state fiscal biennium under Section
7-10 46.003 for a school district may not exceed the lesser of:
7-11 (1) the amount the actual debt service payments the
7-12 district makes in the biennium in which the bonds are issued; or
7-13 (2) the greater of:
7-14 (A) $100,000; or
7-15 (B) the product of the number of students in
7-16 average daily attendance in the district multiplied by $250.
7-17 Sec. 46.006. SHORTAGE OR EXCESS OF FUNDS APPROPRIATED FOR
7-18 NEW PROJECTS. (a) If the total amount appropriated for a year for
7-19 new projects is less than the amount of money to which school
7-20 districts applying for state assistance are entitled for that year,
7-21 the commissioner shall rank each school district applying by wealth
7-22 per student. For purposes of this section, a district's wealth per
7-23 student is reduced by 10 percent for each state fiscal biennium in
7-24 which the district did not receive assistance under this chapter.
7-25 The commissioner shall adjust the rankings after making the
8-1 reductions in wealth per student required by this subsection.
8-2 (b) Beginning with the district with the lowest adjusted
8-3 wealth per student that has applied for state assistance for the
8-4 year, the commissioner shall award state assistance to districts
8-5 that have applied for state assistance in ascending order of
8-6 adjusted wealth per student. The commissioner shall award the full
8-7 amount of state assistance to which a district is entitled under
8-8 this chapter, except that the commissioner may award less than the
8-9 full amount to the last district for which any funds are available.
8-10 (c) Any amount appropriated for the first year of a fiscal
8-11 biennium that is not awarded to a school district may be used to
8-12 provide assistance in the following fiscal year.
8-13 (d) In this section, "wealth per student" means a school
8-14 district's taxable value of property as determined under Subchapter
8-15 M, Chapter 403, Government Code, divided by the district's average
8-16 daily attendance as determined under Section 42.005.
8-17 Sec. 46.007. REFUNDING BONDS. A school district may use
8-18 state funds received under this chapter to pay the principal of and
8-19 interest on refunding bonds that:
8-20 (1) are issued to refund bonds eligible under Section
8-21 46.003;
8-22 (2) do not have a final maturity date later than the
8-23 final maturity date of the bonds being refunded;
8-24 (3) may not be called for redemption earlier than the
8-25 earliest call date of the bonds being refunded; and
9-1 (4) result in a present value savings, which is
9-2 determined by computing the net present value of the difference
9-3 between each scheduled payment on the original bonds and each
9-4 scheduled payment on the refunding bonds. The present value
9-5 savings shall be computed at the true interest cost of the
9-6 refunding bonds.
9-7 Sec. 46.008. STANDARDS. The commissioner shall establish
9-8 standards for adequacy of school facilities. The standards must
9-9 include requirements related to space, educational adequacy, and
9-10 construction quality. All new facilities constructed after
9-11 September 1, 1998, must meet the standards to be eligible to be
9-12 financed with state or local tax funds.
9-13 Sec. 46.009. PAYMENT OF SCHOOL FACILITIES ALLOTMENTS.
9-14 (a) For each school year, the commissioner shall determine the
9-15 amount of money to which each school district is entitled under
9-16 this chapter.
9-17 (b) If the amount appropriated for purposes of this chapter
9-18 for a year is less than the total amount determined under
9-19 Subsection (a) for that year, the commissioner shall:
9-20 (1) transfer from the Foundation School Program to the
9-21 instructional facilities program the amount by which the total
9-22 amount determined under Subsection (a) exceeds the amount
9-23 appropriated; and
9-24 (2) reduce each district's foundation school fund
9-25 allocations in the manner provided by Section 42.253.
10-1 (c) Warrants for payments under this chapter shall be
10-2 approved and transmitted to school district treasurers or
10-3 depositories in the same manner as warrants for payments under
10-4 Chapter 42.
10-5 (d) As soon as practicable after September 1 of each year,
10-6 the commissioner shall distribute to each school district the
10-7 amount of state assistance under this chapter to which the
10-8 commissioner has determined the district is entitled for the school
10-9 year. The district shall deposit the money in the interest and
10-10 sinking fund for the bonds for which the assistance is received and
10-11 shall adopt a tax rate for purposes of debt service that takes into
10-12 account the balance of the interest and sinking fund.
10-13 (e) Section 42.258 applies to payments under this chapter.
10-14 (f) If a school district would have received a greater
10-15 amount under this chapter for the applicable school year using the
10-16 adjusted value determined under Section 42.257, the commissioner
10-17 shall add the difference between the adjusted value and the amount
10-18 the district received under this chapter to subsequent
10-19 distributions to the district under this chapter.
10-20 Sec. 46.010. PROJECTS BY MORE THAN ONE DISTRICT. If two or
10-21 more districts apply for state assistance in connection with a
10-22 joint project at a single location, each district is entitled to a
10-23 guaranteed facilities yield amount of state and local funds that is
10-24 20 percent higher than the amount to which the district would
10-25 otherwise be entitled under Section 46.005.
11-1 Sec. 46.011. SALE OF INSTRUCTIONAL FACILITY FINANCED WITH
11-2 INSTRUCTIONAL FACILITIES ALLOTMENT. (a) If an instructional
11-3 facility financed by bonds paid with state and local funds under
11-4 this chapter is sold before the bonds are fully paid, the school
11-5 district shall send to the comptroller an amount equal to the
11-6 district's net proceeds from the sale multiplied by a percentage
11-7 determined by dividing the amount of state funds under this
11-8 subchapter used to pay the principal of and interest on the bonds
11-9 by the total amount of principal and interest paid on the bonds
11-10 with funds other than the proceeds of the sale.
11-11 (b) In this section, "net proceeds" means the difference
11-12 between the total amount received from the sale less:
11-13 (1) the amount necessary to fully pay the outstanding
11-14 principal of and interest on the bonds; and
11-15 (2) the school district's costs of the sale, as
11-16 approved by the commissioner.
11-17 SECTION 1.05. Section 21.401, Education Code, is amended by
11-18 adding Subsections (a-3) and (a-4) and amending Subsection (b-1) to
11-19 read as follows:
11-20 (a-3) For the 1997-1998 school year, an educator employed
11-21 under a 10-month contract must provide a minimum of 186 days of
11-22 service. This subsection expires September 1, 1998.
11-23 (a-4) For the 1998-1999 school year, an educator employed
11-24 under a 10-month contract must provide a minimum of 187 days of
11-25 service. This subsection expires September 1, 1999.
12-1 (b-1) Subsection (b) applies beginning with the 1999-2000
12-2 [1997-1998] school year. This subsection expires January 1, 2000
12-3 [1998].
12-4 SECTION 1.06. Section 21.402, Education Code, is amended by
12-5 adding Subsections (a-1) and (a-2) to read as follows:
12-6 (a-1) Notwithstanding Subsection (a), for the 1997-1998 and
12-7 1998-1999 school years, "FSP" for purposes of Subsection (a):
12-8 (1) includes amounts appropriated in H.B. No. 4, Acts
12-9 of the 75th Legislature, Regular Session, 1997; and
12-10 (2) does not include the following amounts
12-11 appropriated in H.B. No. 1, Acts of the 75th Legislature, Regular
12-12 Session, 1997:
12-13 (A) amounts appropriated under Rider 73
12-14 following appropriations to the Texas Education Agency in Article
12-15 III of that Act; or
12-16 (B) amounts appropriated under Section 198 of
12-17 Article IX of that Act.
12-18 (a-2) Subsection (a-1) and this subsection expire September
12-19 1, 1999.
12-20 SECTION 1.07. Section 403.302, Government Code, is amended
12-21 by adding Subsections (h) and (i) to read as follows:
12-22 (h) For purposes of Sections 41.0011 and 42.2511, Education
12-23 Code, for the 1996 and 1997 tax years, the comptroller shall
12-24 certify to the commissioner of education:
12-25 (1) a final value for each school district computed on
13-1 a residence homestead exemption under Section 1-b(c), Article VIII,
13-2 Texas Constitution, of $5,000; and
13-3 (2) a final value for each school district computed
13-4 on:
13-5 (A) a residence homestead exemption under
13-6 Section 1-b(c), Article VIII, Texas Constitution, of $15,000; and
13-7 (B) the effect of the additional limitation on
13-8 tax increases under Section 1-b(d), Article VIII, Texas
13-9 Constitution, as proposed by H.J.R. No. 4, 75th Legislature,
13-10 Regular Session, 1997.
13-11 (i) Subsection (h) and this subsection expire September 1,
13-12 1999.
13-13 SECTION 1.08. Subchapter H, Chapter 42, Education Code, is
13-14 repealed.
13-15 SECTION 1.09. (a) For the 1997-1998 and 1998-1999 school
13-16 years, the commissioner of education shall increase the entitlement
13-17 under the Foundation School Program of a district that experiences
13-18 additional salary cost resulting from this Act. The amount of
13-19 additional salary cost shall be computed by determining what the
13-20 district's salary cost for the 1996-1997 school year would have
13-21 been if, for purposes of the minimum salary schedule under Section
13-22 21.402, Education Code, the amount appropriated for the Foundation
13-23 School Program for the 1997-1998 state fiscal year were increased
13-24 by $520 million and comparing that cost and the amount the district
13-25 was actually required to pay under Section 21.402, Education Code.
14-1 For this purpose, the commissioner of education shall use 1996-1997
14-2 employment and salary data as reported through the Public Education
14-3 Information Management System (PEIMS).
14-4 (b) A decision by the commissioner of education under this
14-5 section is final and may not be appealed.
14-6 (c) Notwithstanding any other provision to the contrary, for
14-7 a school district that entered into an employment contract with an
14-8 individual before June 15, 1997, that specifies a salary supplement
14-9 or addition to the salary schedule prescribed by law, the salary
14-10 schedule to which the supplement or addition applies is the salary
14-11 schedule prescribed by Section 21.402, Education Code, as that
14-12 section applied for the 1996-1997 school year, except that an
14-13 individual shall be paid at least the minimum salary prescribed by
14-14 Section 21.402, Education Code, as that section applies for the
14-15 1997-1998 school year, for the step to which the individual is
14-16 assigned. A school district is not required to increase the pay of
14-17 any teacher or full-time librarian except as provided by Section
14-18 21.402, Education Code.
14-19 SECTION 1.10. In addition to other amounts appropriated for
14-20 the fiscal biennium ending August 31, 1999:
14-21 (1) the sum of $520 million is appropriated, for the
14-22 fiscal year ending August 31, 1998, from the general revenue fund
14-23 to the Texas Education Agency for purposes of the Foundation School
14-24 Program; and
14-25 (2) the sum of $520 million, plus the unexpended
15-1 balance of the appropriation described by Subdivision (1) of this
15-2 section, is appropriated, for the fiscal year ending August 31,
15-3 1999, from the general revenue fund to the Texas Education Agency
15-4 for the same purpose.
15-5 SECTION 1.11. The amount appropriated in H.B. No. 1, Acts of
15-6 the 75th Legislature, Regular Session, 1997, to the Texas Education
15-7 Agency for Strategy A.2.2.--Maximizing School Facilities, in
15-8 Article III of that Act, is reduced to $100 million for the fiscal
15-9 year ending August 31, 1998, and to $100 million, plus the
15-10 unexpended balance for the fiscal year 1998, for the fiscal year
15-11 ending August 31, 1999.
15-12 SECTION 1.12. (a) The amount appropriated in H.B. No. 1,
15-13 Acts of the 75th Legislature, Regular Session, 1997, to the Texas
15-14 Education Agency for Strategy A.2.1.--Foundation School Program, in
15-15 Article III of that Act, is increased by $1 million for each year
15-16 of the fiscal biennium ending August 31, 1999, and the basic
15-17 allotment under Section 42.101, Education Code, is increased to
15-18 $2,396.
15-19 (b) The amounts appropriated under Rider 73 following the
15-20 appropriations to the Texas Education Agency in Article III, H.B.
15-21 No. 1, Acts of the 75th Legislature, Regular Session, 1997, to
15-22 provide transition assistance to school districts affected by an
15-23 increase in the minimum salary schedule are reduced by $36 million
15-24 for the fiscal year ending August 31, 1998, and by $31 million for
15-25 the fiscal year ending August 31, 1999.
16-1 (c) The amounts appropriated under Section 198, Article IX,
16-2 H.B. No. 1, Acts of the 75th Legislature, Regular Session, 1997,
16-3 for increases in enrollment growth are increased by $65 million.
16-4 SECTION 1.13. (a) Except as provided by Subsection (b) of
16-5 this section, this article takes effect September 1, 1997.
16-6 (b) Sections 1.01, 1.03, 1.05, 1.06, 1.07, 1.09, 1.10, and
16-7 1.12 of this Act take effect September 1, 1997, but only if the
16-8 constitutional amendment proposed by H.J.R. No. 4, 75th
16-9 Legislature, Regular Session, 1997, is adopted by the voters. If
16-10 the proposed amendment is not adopted, Sections 1.01, 1.03, 1.05,
16-11 1.06, 1.07, 1.09, 1.10, and 1.12 of this Act have no effect.
16-12 ARTICLE 2. PROPERTY TAXES
16-13 SECTION 2.01. Section 11.13(b), Tax Code, is amended to read
16-14 as follows:
16-15 (b) An adult is entitled to exemption from taxation by a
16-16 school district of $15,000 [$5,000] of the appraised value of the
16-17 adult's [his] residence homestead, except that $10,000 of the
16-18 exemption does not apply to an entity operating under former
16-19 Chapter 17, 18, 25, 26, 27, or 28, Education Code, as those
16-20 chapters existed on May 1, 1995, as permitted by Section 11.301,
16-21 Education Code.
16-22 SECTION 2.02. Section 11.26, Tax Code, is amended by
16-23 amending Subsections (a) and (b) and adding Subsections (g) and (h)
16-24 to read as follows:
16-25 (a) The tax officials shall appraise the property to which
17-1 this section applies and calculate taxes as on other property, but
17-2 if the tax so calculated exceeds the limitation imposed by this
17-3 section, the tax imposed is the amount of the tax as limited by
17-4 this section, except [Except] as otherwise provided by this
17-5 section. A [Subsection (b) of this section, a] school district may
17-6 not increase the total annual amount of ad valorem tax it imposes
17-7 on the residence homestead of an individual 65 years or older above
17-8 the amount of the tax it imposed in the first tax year the
17-9 individual qualified that residence homestead for the exemption
17-10 provided by [Subsection (c) of] Section 11.13(c) [11.13 of this
17-11 code]. If the first tax year the individual qualified the
17-12 residence homestead for the exemption provided by Section 11.13(c)
17-13 was a tax year before the 1997 tax year, the amount of the
17-14 limitation provided by this section is the amount of tax the school
17-15 district imposed for the 1996 tax year less an amount equal to the
17-16 amount determined by multiplying $10,000 times the tax rate of the
17-17 school district for the 1997 tax year, plus any 1997 tax
17-18 attributable to improvements made in 1996, other than improvements
17-19 made to comply with governmental regulations or repairs [The tax
17-20 officials shall continue to appraise the property and to calculate
17-21 taxes as on other property, but if the tax so calculated exceeds
17-22 the limitation imposed by this section, the tax imposed is the tax
17-23 imposed in the first year the individual qualified the residence
17-24 homestead for the exemption].
17-25 (b) If an individual makes improvements to the individual's
18-1 [his] residence homestead, other than improvements required to
18-2 comply with governmental requirements or repairs, the school
18-3 district may increase the tax on the homestead in the first year
18-4 the value of the homestead is increased on the appraisal roll
18-5 because of the enhancement of value by the improvements. The
18-6 amount of the tax increase is determined by applying the current
18-7 tax rate to the difference in the assessed value of the homestead
18-8 with the improvements and the assessed value it would have had
18-9 without the improvements. A limitation [The limitations] imposed
18-10 by [Subsection (a) of] this section then applies [apply] to the
18-11 increased amount of tax until more improvements, if any, are made.
18-12 (g) Except as provided by Subsection (b), if an individual
18-13 who receives a limitation on tax increases imposed by this section
18-14 subsequently qualifies a different residence homestead for an
18-15 exemption under Section 11.13, a school district may not impose ad
18-16 valorem taxes on the subsequently qualified homestead in a year in
18-17 an amount that exceeds the amount of taxes the school district
18-18 would have imposed on the subsequently qualified homestead in the
18-19 first year in which the individual receives that exemption for the
18-20 subsequently qualified homestead had the limitation on tax
18-21 increases imposed by this section not been in effect, multiplied by
18-22 a fraction the numerator of which is the total amount of school
18-23 district taxes imposed on the former homestead in the last year in
18-24 which the individual received that exemption for the former
18-25 homestead and the denominator of which is the total amount of
19-1 school district taxes that would have been imposed on the former
19-2 homestead in the last year in which the individual received that
19-3 exemption for the former homestead had the limitation on tax
19-4 increases imposed by this section not been in effect.
19-5 (h) An individual who receives a limitation on tax increases
19-6 under this section and who subsequently qualifies a different
19-7 residence homestead for an exemption under Section 11.13, or an
19-8 agent of the individual, is entitled to receive from the chief
19-9 appraiser of the appraisal district in which the former homestead
19-10 was located a written certificate providing the information
19-11 necessary to determine whether the individual may qualify for a
19-12 limitation on the subsequently qualified homestead under Subsection
19-13 (g) and to calculate the amount of taxes the school district may
19-14 impose on the subsequently qualified homestead.
19-15 SECTION 2.03. Section 26.08, Tax Code, is amended to read as
19-16 follows:
19-17 Sec. 26.08. ELECTION TO RATIFY [LIMIT] SCHOOL TAXES.
19-18 (a) If the governing body of a school district adopts a tax rate
19-19 that exceeds the [sum of the] district's rollback tax [effective
19-20 maintenance] rate, [the rate of $0.08, and the district's current
19-21 debt rate,] the registered voters of the district at an election
19-22 held for that purpose must determine whether to approve the adopted
19-23 [limit the] tax rate [the governing body may adopt for the current
19-24 year to the school district rollback tax rate]. When increased
19-25 expenditure of money by a school district is necessary to respond
20-1 to a disaster, including a tornado, hurricane, flood, or other
20-2 calamity, but not including a drought, that has impacted a school
20-3 district and the governor has requested federal disaster assistance
20-4 for the area in which the school district is located, an election
20-5 is not required under this section to approve [limit] the tax rate
20-6 adopted by the governing body [may adopt] for the year following
20-7 the year in which the disaster occurs.
20-8 (b) The governing body shall order that the [an] election be
20-9 held in the school district on a date not less than 30 or more than
20-10 90 days after the day on which it adopted the tax rate. Section
20-11 41.001, Election Code, does not apply to the election unless a date
20-12 specified by that section falls within the time permitted by this
20-13 section. At the election, the ballots shall be prepared to permit
20-14 voting for or against the proposition: "Approving [Limiting] the ad
20-15 valorem tax rate of $_____ per $100 valuation in (name of school
20-16 district) for the current year, a rate that is $_____ higher per
20-17 $100 valuation than [from (the rate adopted) to (]the school
20-18 district rollback tax rate[)]." The ballot proposition must
20-19 include the adopted tax rate and the difference between that rate
20-20 and the rollback tax rate in the appropriate places.
20-21 (c) If a majority of the votes cast in the election favor
20-22 the proposition, the tax rate for the current year is the rate that
20-23 was adopted by the governing body.
20-24 (d) If [a majority of the votes cast in the election favor]
20-25 the proposition is not approved as provided by Subsection (c), the
21-1 governing body may not adopt a tax rate for the school district for
21-2 the current year that exceeds the school district's [district]
21-3 rollback tax rate [calculated for that year using the following
21-4 formula:]
21-5 [ROLLBACK TAX RATE = (ENROLLMENT ADJUSTMENT) (EFFECTIVE MAINTENANCE
21-6 AND OPERATIONS RATE FOR TAX YEAR) + $0.08 + CURRENT DEBT RATE
21-7 where:]
21-8 [(1) "tax year" denotes amounts used in calculating
21-9 the rollback tax rate in the year immediately preceding the year in
21-10 which the tax increase that initiated the referendum occurred
21-11 rather than the year in which the calculation occurs; and]
21-12 [(2) "enrollment adjustment" is computed by dividing
21-13 the current year's projected fall enrollment, as defined by the
21-14 Texas Education Agency, by last year's enrollment but may not be
21-15 less than 1.0].
21-16 (e) [(d)] For purposes of this section, local tax funds
21-17 dedicated to a junior college district under Section 45.105(e),
21-18 Education Code, shall be eliminated from the calculation of the tax
21-19 rate adopted by the governing body of the school district.
21-20 However, the funds dedicated to the junior college district are
21-21 subject to Section 26.085.
21-22 (f) [(e)] If a school district is certified by the
21-23 commissioner of education under Section 42.251(c), Education Code,
21-24 to have been subject to a reduction in total revenue for the school
21-25 year ending on August 31 of the tax year,[:]
22-1 [(1) the district's effective maintenance and
22-2 operations rate for the tax year is calculated as provided by
22-3 Section 26.012, except that last year's levy is reduced by the
22-4 amount of taxes imposed in the preceding year, if any, to offset
22-5 the amount of the reduction certified by the commissioner; and]
22-6 [(2)] the district's rollback tax rate for the tax
22-7 year [calculated as provided by Section 26.04 or by Subsection (c),
22-8 as applicable,] is increased by the tax rate that, if applied to
22-9 the current total value for the school district, would impose taxes
22-10 in an amount equal to the amount of the reduction certified by the
22-11 commissioner.
22-12 (g) [(f)] In a school district that received distributions
22-13 from an equalization tax imposed under former Chapter 18, Education
22-14 Code, the effective rate of that tax as of the date of the county
22-15 unit system's abolition is added to the [district's effective
22-16 maintenance and operations rate under Subsections (a) and (c) of
22-17 this section in the calculation of the] district's rollback tax
22-18 rate.
22-19 (h) [(i)] For purposes of this section, increases in taxable
22-20 values and tax levies occurring within a reinvestment zone under
22-21 [the provisions of] Chapter 311 (Tax Increment Financing Act), in
22-22 which the district is a participant, shall be eliminated from the
22-23 calculation of the tax rate adopted by the governing body of the
22-24 school district.
22-25 (i) For purposes of this section, the rollback tax rate of a
23-1 school district is the sum of:
23-2 (1) the tax rate that, applied to the current total
23-3 value for the district, would impose taxes in an amount that, when
23-4 added to state funds that would be distributed to the district
23-5 under Chapter 42, Education Code, for the school year beginning in
23-6 the current tax year using that tax rate, would provide the same
23-7 amount of state funds distributed under Chapter 42 and maintenance
23-8 and operations taxes of the district per student in weighted
23-9 average daily attendance for that school year that was available to
23-10 the district in the preceding year;
23-11 (2) the rate of $0.08 per $100 of taxable value; and
23-12 (3) the district's current debt rate.
23-13 (j) For the 1997 tax year, the rollback tax rate is the sum
23-14 of:
23-15 (1) the greater of:
23-16 (A) the rate necessary to impose taxes in an
23-17 amount that would provide the same amount of state and local funds
23-18 per weighted student for maintenance and operations as determined
23-19 under Subsection (i)(1) for the 1997-1998 school year that was
23-20 available to the district in the 1996-1997 school year; or
23-21 (B) the district's nominal maintenance and
23-22 operations tax rate for the 1996 tax year;
23-23 (2) the rate of $0.08 per $100 of taxable value; and
23-24 (3) the district's current debt rate.
23-25 (k) For the 1998 tax year, the rollback tax rate is the sum
24-1 of:
24-2 (1) the greater of:
24-3 (A) the rate necessary to impose taxes in an
24-4 amount that would provide the same amount of state and local funds
24-5 per weighted student for maintenance and operations as determined
24-6 under Subsection (i)(1) for the 1998-1999 school year that was
24-7 available to the district in the 1996-1997 school year; or
24-8 (B) the district's nominal maintenance and
24-9 operations tax rate for the 1996 tax year;
24-10 (2) the amount by which the district's adopted tax
24-11 rate for the 1997 tax year exceeded the sum of Subsections (j)(1)
24-12 and (j)(3) for that tax year;
24-13 (3) the rate of $0.08 per $100 of taxable value; and
24-14 (4) the district's current debt rate.
24-15 (l) This subsection and Subsections (j) and (k) expire
24-16 January 1, 1999.
24-17 SECTION 2.04. (a) Sections 2.01 and 2.02 of this article
24-18 take effect on the date that the constitutional amendment proposed
24-19 by H.J.R. No. 4, 75th Legislature, Regular Session, 1997, takes
24-20 effect, and apply to each tax year that begins on or after January
24-21 1, 1997. If that amendment is not approved by the voters, Sections
24-22 2.01 and 2.02 of this article have no effect.
24-23 (b) Section 2.03 of this article takes effect September 1,
24-24 1997, and applies to the tax rate of a school district that is
24-25 adopted by the governing body of the district on or after that
25-1 date. A school district tax rate adopted before the effective date
25-2 of Section 2.03 of this article for 1997 taxes is void.
25-3 ARTICLE 3. LOTTERY REVENUE
25-4 SECTION 3.01. Section 466.015, Government Code, is amended
25-5 by amending Subsection (c) and adding Subsection (d) to read as
25-6 follows:
25-7 (c) The commission may adopt rules governing the
25-8 establishment and operation of the lottery, including rules
25-9 governing:
25-10 (1) the type of lottery games to be conducted;
25-11 (2) the price of each ticket;
25-12 (3) the number of winning tickets and amount of the
25-13 prize paid on each winning ticket, except that the total amount of
25-14 prizes awarded under this chapter may not exceed the amount
25-15 described in Subsection (d);
25-16 (4) the frequency of the drawing or selection of a
25-17 winning ticket;
25-18 (5) the number and types of locations at which a
25-19 ticket may be sold;
25-20 (6) the method to be used in selling a ticket;
25-21 (7) the use of vending machines or electronic or
25-22 mechanical devices of any kind, other than machines or devices that
25-23 dispense currency or coins as prizes;
25-24 (8) the manner of paying a prize to the holder of a
25-25 winning ticket;
26-1 (9) the investigation of possible violations of this
26-2 chapter or any rule adopted under this chapter;
26-3 (10) the means of advertising to be used for the
26-4 lottery;
26-5 (11) the qualifications of vendors of lottery services
26-6 or equipment;
26-7 (12) the confidentiality of information relating to
26-8 the operation of the lottery, including:
26-9 (A) trade secrets;
26-10 (B) security measures, systems, or procedures;
26-11 (C) security reports;
26-12 (D) bids or other information regarding the
26-13 commission's contracts, if disclosure of the information would
26-14 impair the commission's ability to contract for facilities, goods,
26-15 or services on terms favorable to the commission;
26-16 (E) personnel information unrelated to
26-17 compensation, duties, qualifications, or responsibilities; and
26-18 (F) information obtained by commission security
26-19 officers or investigators;
26-20 (13) the development and availability of a model
26-21 agreement governing the division of a prize among multiple
26-22 purchasers of a winning ticket purchased through a group purchase
26-23 or pooling arrangement;
26-24 (14) the criteria to be used in evaluating bids for
26-25 contracts for lottery facilities, goods, and services; or
27-1 (15) any other matter necessary or desirable as
27-2 determined by the commission, to promote and ensure:
27-3 (A) the integrity, security, honesty, and
27-4 fairness of the operation and administration of the lottery; and
27-5 (B) the convenience of players and holders of
27-6 winning tickets.
27-7 (d) The total amount of lottery prizes that the commission
27-8 may award for all lottery games in any fiscal year may not exceed
27-9 an amount equal to the gross revenue from the sale of tickets in
27-10 that fiscal year multiplied by the percentage amount of lottery
27-11 prizes awarded for all lottery games in fiscal year 1997 as
27-12 determined by the comptroller minus an amount equal to five percent
27-13 of gross lottery revenue for the fiscal year in which the prizes
27-14 are being awarded.
27-15 SECTION 3.02. Section 466.355(b), Government Code, is
27-16 amended to read as follows:
27-17 (b) Money in the state lottery account may be used only for
27-18 the following purposes and shall be distributed as follows:
27-19 (1) the payment of prizes to the holders of winning
27-20 tickets;
27-21 (2) the payment of costs incurred in the operation and
27-22 administration of the lottery, including any fees received by a
27-23 lottery operator, provided that the costs incurred in a fiscal
27-24 biennium may not exceed an amount equal to 15 percent of the gross
27-25 revenue accruing from the sale of tickets in that biennium;
28-1 (3) the establishment of a pooled bond fund, lottery
28-2 prize reserve fund, unclaimed prize fund, and prize payment
28-3 account; and
28-4 (4) the balance, after creation of a reserve
28-5 sufficient to pay the amounts needed or estimated to be needed
28-6 under Subdivisions (1) through (3), to be transferred to the
28-7 foundation school [unobligated portion of the general revenue]
28-8 fund, on or before the 15th day of each month.
28-9 SECTION 3.03. This article takes effect September 1, 1997.
28-10 SECTION 3.04. (a) Except as provided by Subsection (b) of
28-11 this section, the change in law made to Section 466.015, Government
28-12 Code, by this article applies to a ticket sold on or after the
28-13 effective date of this article. A ticket sold before that date is
28-14 governed by the law in effect when the ticket was sold, and that
28-15 law is continued in effect for that purpose.
28-16 (b) In fiscal year 1998, the total amount of lottery prizes
28-17 that the Texas Lottery Commission may award under Section
28-18 466.015(d), Government Code, as added by this article, may not
28-19 exceed an amount equal to the gross revenue from the sale of
28-20 lottery tickets multiplied by the percentage amount of lottery
28-21 prizes awarded for all lottery games in fiscal year 1997 as
28-22 determined by the comptroller minus an amount equal to 4-1/2
28-23 percent of gross lottery revenue for the 1998 fiscal year.
28-24 SECTION 3.05. The change in law made to Section 466.355,
28-25 Government Code, by this article applies only to a transfer from
29-1 the state lottery account made on or after the effective date of
29-2 this article.
29-3 ARTICLE 4. EMERGENCY
29-4 SECTION 4.01. The importance of this legislation and the
29-5 crowded condition of the calendars in both houses create an
29-6 emergency and an imperative public necessity that the
29-7 constitutional rule requiring bills to be read on three several
29-8 days in each house be suspended, and this rule is hereby suspended.
29-9 Explanation: This change is necessary to provide for the
29-10 distribution of available revenue for property tax relief to owners
29-11 of homestead property, to provide a funding mechanism to compensate
29-12 school districts for the amounts of losses of local revenue
29-13 occurring as a result of the added homestead exemptions and tax
29-14 limitations, to allocate certain funds for school debt service, to
29-15 increase the minimum salary schedule for public school teachers, to
29-16 make, limit, and transfer appropriations for those purposes, to
29-17 provide for the computation of the school tax rollback rate, and to
29-18 increase and dedicate certain revenue from the state lottery.
29-19 ______________________________________
29-20 President of the Senate
29-21 I hereby certify that the above
29-22 Resolution was adopted by the Senate
29-23 on May 31, 1997, by the following
29-24 vote: Yeas 30, Nays 0.
29-25 ______________________________________
29-26 Secretary of the Senate